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CA Intermediate · Taxation · Place of Supply

Vihaan Events, a registered entity in Mumbai (Maharashtra), is hired by Ms Radhika, an unregistered individual resident in Indore (Madhya Pradesh), to organise her wedding reception. The reception is held at a venue in Udaipur (Rajasthan). Ms Radhika pays Vihaan Events from her Indore bank account. The service is event management of a kind covered by the specific rule for services in relation to an event. What is the place of supply and the nature of the supply?

The place of supply is Udaipur, Rajasthan, and the supply is inter-State. For event-related services to an unregistered recipient, the place of supply is where the event is held. As the supplier is located in Maharashtra, the locations differ, so IGST applies rather than CGST and SGST.

  1. AUdaipur, Rajasthan; inter-State supplyCorrect
  2. BIndore, Madhya Pradesh; inter-State supply
  3. CMumbai, Maharashtra; intra-State supply
  4. DUdaipur, Rajasthan; intra-State supply

Explanation

Services supplied to a registered person in relation to an event are placed at the location of the registered recipient; for an unregistered recipient the place of supply is the place where the event is actually held. Ms Radhika is unregistered, so the place of supply is Udaipur, Rajasthan. Supplier location is Maharashtra, so location of supplier and place of supply are in different States, making it an inter-State supply (IGST). Indore is only the recipient's address, which applies under the general rule, not the event rule.

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